Fabletics using the Power of the Crowd to Increase Sales and Customers

Savvy brands are now shifting their marketing strategies to focus more on consumer trends and behaviors. The use of crowdsourced reviews is gaining popularity, and companies like Fabletics have realized the power of the crowd in building clients portfolio. Technology has made things much easier and has changed the way people shop. A modern-day customer is a tech-savvy person thus shops online just by the click of a button. Almost everyone has a cell phone or a computer that is connected to the internet. Consumers when they want to purchase a product they go online and source reviews from other consumers. A customer will be influenced to purchase a product that has more positive reviews thus the power of the crowd. The power of the crowd is what Fabletics is leveraging on.

Fabletics was co-founded in 2013 by Don Ressler and Adam Goldenberg, and within a short period, its revenues have risen to over 235 million dollars. In addition, the company has more than one million who are subscribed to a monthly plan. Shawn Gold the corporate marketing officer of TechStyle attributes the rapid growth to the power of crowd-sourced reviews. Crowdsource reviews have helped Fabletics acquire new customers, retain the existing customers and as a result increased sales.

Reviews are what customer trust more than an advertisement. This is so because reviews give a firsthand experience of the products. A person who writes a review on a particular product is a person who has already purchased and used the product thus the review is a testimony of how the product is. The more the positive reviews a product gets, the more it attracts potential buyers. Trust is gained from other people’s opinion and feedbacks. Fabletics has capitalized on reviews, and that’s it is why it has succeeded in the activewear industry.

The power of the crowd has helped Fabletics retain most of its customers, over 85 percent of them and has also attracted close to 17 percent new customers through referrals says Gold. Reviews help improve the search ranking of a particular product or company.

Reviews help keep a company in check as no company would want to see negative comments on their product. For any business to be successful, they must be data-driven and take customers reviews more seriously. Being customer focused encourages a business to be more transparent to its clients. This is what Fabletics does. They take reviews and their customers with the seriousness they deserve and in so doing they at least try to respond to 30 % of customers inquiries and have an online platform where customers raise their concern for action and state their preference.

Kate Hudson is Fabletics Partner and also serves as the face of the brand. Don and Adam decided to have Kate as a partner because of her active lifestyle and the fact that she is so approachable.

Fabletics has made the shopping experience easier by creating a lifestyle quiz once you sign up for them. The quiz helps a client determine his/her lifestyle and exercises habits, and as a result, Fabletics creates a product that is customized according to client’s tastes and preferences.

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